(MENAFN) After the companies registered on the Saudi stock exchange, Tadawul, announced their profits, Arab News examined the income accounts of three food stores and a fashion chain. Only Alhokair, primarily a clothing chain, increased its revenue.
The increase in sales at Alhokair saw annual revenues increase by 75% to reach SR 1,311 million (approximately $ 349.2). A decrease in depreciation and amortization was also a reason due to store closings. Financial budgets have fallen by more than 25 percent as the company maintains its strategy of closing unprofitable outlets. The company also runs a much smaller food business.
Ahmed Belbesy, the company’s chief financial officer, told Al Arabiya in a new interview, âthe pandemic has helped make swift decisions to get rid of stores, and in the last seven fiscal quarters, around 600 stores not profitable were closed. At the same time, 300 new stores were opened.
He clarified that in the first two quarters of 2021, starting in early April, the company launched 11 food branches. As for clothing brands, the firm has continued to get rid of branches that do not make enough sales.
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